As the tax season deadline quickly approaches, many taxpayers anticipate receiving a portion of their already-paid federal income tax back as a refund. A recent survey indicates that the majority of Americans plan to use their refund for essential needs or to reduce debt.
Have you filed your taxes weeks ago but are still waiting for your refund? Let's alleviate your concerns by explaining the typical time frame the IRS takes to process tax refunds, potential reasons for delays, and how you can utilize the IRS website to track your refund status.
How long does it usually take the IRS to process a federal tax return?
The IRS states that if you e-file your return, you should receive your refund within 21 days, or even sooner if you opt for direct deposit to your bank account. Around 90% of taxpayers generally get their federal tax refunds within this timeframe.
10 reasons why your tax refund could be delayed.
If more than 21 days have passed and you're still wondering about your refund, there could be straightforward reasons for the delay. Here are some common scenarios that could prolong the processing time:
1. Errors on your tax forms: Mistakes while preparing taxes, such as wrong Social Security or ITIN numbers, can cause delays. 2. Missing information: Omissions like forgetting to sign or skipping a required form can extend the processing time. 3. Incorrect bank account details: Providing the wrong information for direct deposit can hinder the refund process. 4. Claiming specific tax credits: Certain tax credits may require additional time before refunds are issued. 5. Filing an amended return: Correcting errors or making changes to your return may result in a lengthier processing duration. 6. Filing a paper return: Submitting taxes by mail can lead to significant delays in processing. 7. Refund offset: Offsetting refunds due to outstanding debts like child support or past-due taxes can delay payments. 8. Identity theft: Being a victim of identity theft can impact the processing of your refund. 9. Early or late submission: Filing too early or close to the deadline may cause delays. 10. Previous audit: If you were audited in a previous year, your current return may face additional scrutiny.
To track your refund using the IRS 'Where’s My Refund' tool, provide necessary details such as your SSN, filing status, and exact refund amount. Opting for e-filing with direct deposit is the quickest way to receive your refund. If there are delays beyond the expected timeframe, contacting the IRS for assistance is recommended.